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What is the standard deviation of return

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Reference no: EM133069856

Choudhary Corp believes the following probability distribution exists for its stock. 

                                                          Probability                       Stock's

            State of                                of State                              Market

            the Economy                      Occurring                           Return

            Boom                                        0.45                                     25%

            Normal                                     0.50                                    15%

            Recession                                 0.05                                     5%

1. What is the expected rate of return on the company's stock?

2. What is the standard deviation of return?

3. What is the coefficient of variation on the company's stock?

Reference no: EM133069856

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